Global News Journal

Beyond the World news headlines

Ordinary Indonesians mourn loss of Finance Minister Indrawati

Photo

By Sunanda CreaghSri Mulyani Indrawati

The decision by Indonesia’s reformist Finance Minister Sri Mulyani Indrawati to move to the World Bank must have thrilled those politicians who lobbied hard to dethrone her and derail her anti-corruption drive. But if letters to the editor in the local media are any guide, Indonesia’s ‘wong cilik’ or the little people, as the man on the street is called here — are in mourning.
“It was a black Wednesday in the history of our nation,” read one reader’s letter to the Jakarta Post.
“One of the most honest and qualified people and someone who is known as the hope, finally succumbed to political pressure by the political elite that prefer to remain.”
Many letter-writers have begged her to return in 2014 to run for president, while others have expressed fears that, without her, Indonesia will return to the bad old days of cronyism.
“We didn’t want to see you driven out. Take pity on the people of Indonesia!” one reader, Daslam Al Maliki, wrote on the Indonesian-language news website Tempo Interaktif.
Indrawati, as well as being a widely respected economist, is a notoriously tough cookie who stood up to powerful businessmen and politicians who wanted the rules bent in their favour.
In retaliation, she was made the target of an inquiry into the 2008 decision to bail out the ailing Bank Century.

Chief among her detractors was Golkar, the party of former President Suharto, now headed by business magnate and politician Aburizal Bakrie.
Her departure has also been met with a deafening silence from the country’s business elite. Few among Indonesia’s tycoons seem sad to see the back of a politician who made it her mission to end collusion between powerful businessmen and crooked officials and lawmakers.
Several have paid lip service to her abilities as an economist but no-one — except the distressed letter-writers — appears to be pleading for her to stay.
The yawning gap between the reponses of the public on the one hand and the political and business elite on the other underlines how out of touch those in power are with their constituents.
Last year’s elections were fought over the issue of reform, the fight against corruption, as means to deliver better economic growth and more jobs in a country of high unemployment and underemployment.
A recent poll by the Indonesian Survey Institute found that those parties that pushed hardest to investigate Indrawati and the Bank Century bailout decision have actually lost support.
Political analysts and economists are now wondering if her departure is a sign that President Susilo Bambang Yudhoyono’s commitment to institutional reform is flagging.
“What is wrong with Indonesia? While the top brains are needed to run this country, even the President approves this brain drain,” one reader, ‘Walt’, wrote in the Jakarta Post.
Not all letter-writers are Indrawati fans; several are suspicious she is leaving the country to avoid further questioning over the Bank Century case, an allegation Indrawati has dismissed.
But to many Indonesians, her bruising political battles have turned her into a national heroine while her new job on the international stage will bring prestige to Indonesia
Indrawati herself appears relieved and happy she is moving on to a job that will, hopefully, involve a little less mud-slinging.
“Don’t cry for me, Indonesia. I go for the good of all,” read one headline in the Jakarta Post, a wry reference to Argentinian leader Evita Peron.

PHOTO CREDIT: Sri Mulyani Indrawati addresses reporters. REUTERS/Enny Nuraheni

Markets call euro zone’s bluff on Greek aid

Photo

The surge in the spread of Greek bond yields over German ones since European leaders issued a promise of emergency loans to Greece last month indicates financial markets do not believe the pledge of euro zone support is anything more than a bluff.

And they are itching to call it.

Euro zone leaders have been betting that a promise of loans to Greece and strong words of political support will be enough to calm markets and allow Athens to borrow at more reasonable rates, therefore rendering any real aid — the dreaded bailout — unnecessary.

Brussels’ MEPs ready to duke it out with bankers

Every new year brings resolutions, and the European Parliament is no exception.

Often derided as a multi-lingual talking shop, the institution is feeling newly invigorated by some fresh faces and by the European Union’s Lisbon reform treaty, which came into force late last year and gives the 736-member parliament more say in drafting laws and acting as a check on legislation.

Almost immediately, parliamentarians were letting their voice be heard, forcing Bulgaria to withdraw its nominee for the European Commission last month because she wasn’t seen to be up to the job. They also look ready to block an agreement between the EU and the United States on sharing data on bank transfers, and are really beginning to show their teeth when it comes to financial sector reform.

from Global Investing:

Austrian subprime woes turn into political hot potato

Photo

The Austrian government debt agency’s two-year old foray into subprime investments has turned into a political hot potato and sparked an increasingly heated debate between the Social Democrats and conservatives, caught in an uneasy but coalition government without viable alternative.

Austria’s audit court last week revealed that the agency, which in its staid day job issues government bonds and makes sure state coffers are full when they need to be, started to moonlight on money markets in 2002 to earn a little extra money on the side.

Does the West still matter for Africa?

Photo

security-council.jpg

First on Zimbabwe, now on Darfur, Western countries have lost out at the U.N. Security Council to African states backed by China and Russia.

A Western attempt to get sanctions imposed on Zimbabwean President Robert Mugabe’s government flopped on July 11. Three weeks later, when it came to renewing the mandate of peacekeepers in Darfur, Western countries bowed to demands to include wording that made clear the council would be ready to freeze any International Criminal Court indictment of President Omar Hassan al-Bashir for genocide. The United States abstained, but that made no difference to the vote.

  •